Born in Liverpool, Peltier was a regular member of Liverpool's reserve team squad and was highly rated by the Melwood staff, he joined Liverpool in 1997 and signed his first professional contract with the club in 2004.[2] In August 2006 he was named in the first-team squad for the first time, as an unused substitute for a UEFA Champions League qualifier against Maccabi Haifa. Two months later he made his debut in a League Cup tie against Reading on 25 October 2006.

He made his Champions League debut for Liverpool against Galatasaray on 5 December 2006. He played the full ninety minutes at right back, Liverpool lost 3–2.

On 16 March 2007, Peltier was subject to an emergency loan cover agreement, and transferred to Championship side Hull City until the end of the season.[3]

Peltier was signed on loan by League One club Yeovil Town on 29 July.[4] Peltier made his debut for Yeovil in a 1–0 away defeat at Huddersfield Town on the opening day of the season. Peltier was a regular at right back for Yeovil throughout the 2007–08 season making 37 appearances for Yeovil during his first season at the club with 34 of them coming in the league.

On 30 June 2009, he joined fellow League One side Huddersfield Town on a three-year contract for an undisclosed fee, taking up the number 2 shirt vacated by Andy Holdsworth. He made his debut in the 2–2 draw against Southend United at Roots Hall on 8 August 2009. Peltier was switched from right back to left back for Huddersfield's game against Millwall due to the usual left back Dean Heffernan being out with a dead leg. He was Town's first choice left back keeping the position for the remainder of the regular season.[5] Peltier helped Town to reach the play-offs in League One playing at left back for the fist leg at home to Millwall, but was forced to return to his usual position of right back for the second leg at the New Den due to an injury to Tom Clarke in the first leg of the play-off semi final.[6]

Peltier was voted the Players Player of the Season, in his first Season at Huddersfield Town,[7] after making a total of 50 appearances in all competitions as Huddersfield finished 6th in the regular season before losing 2–0 to Millwall in the Play-Off semi-final second leg on 18 May 2010.[8] In July 2010, Peltier was linked with a £3 million pound move to QPR managed by Neil Warnock, however in August 2010 signed a new contract at Huddersfield Town to extend his contract until 2014.[9]

On 18 May 2011, Peltier scored his third goal for Town in their victory over Bournemouth in the League One play-off semi-final. In his last game for the club, Peltier failed to gain promotion at Huddersfield after losing 3–0 to Peterborough United in the 2010–11 League One Playoff final.[10]

On 22 June 2011 Peltier signed for Championship side Leicester City, becoming Sven-Göran Eriksson's first signing of the summer after agreeing a three-year deal at the King Power Stadium.[11] The fee was reported to be around £750,000 as part of a package worth over £1 million.[12][13] On 6 August 2011, Peltier scored the winning goal during his league début, against Coventry City, in the opening game of Leicester's 2011–12 season. Over the total of the season Peltier made 40 league appearances, and was the club's first choice right back, ahead of John Pantsil.

In July 2012, After the club signed Belgium right back Ritchie De Laet, Leicester City announced that Lee Peltier was not part of their long term planning,[14] and this triggered transfer interest from his former club Huddersfield Town and Leeds United. Both clubs allegedly bid around £600,000 but the bids were rejected by Leicester City who had set an asking price of £850,000.[15] Leeds agreed a fee with Leicester for the purchase of Peltier on 3 August.[16]

Peltier joined Leeds United on 4 August, and signed a three-year contract with the club. He became the club's 10th signing of the summer.[17] Peltier made his competitive début for Leeds playing at centre half in the first game of the season against Shrewsbury Town in the League Cup on 11 August.[18] Peltier was announced as the new Leeds United captain on 18 August, replacing the departed captain Robert Snodgrass. Peltier made his league debut for Leeds in their 1–0 victory against Wolverhampton Wanderers.[19] Peltier picked up an injury and was ruled out of the match against Charlton Athletic on 23 October.[20]

During the season, Peltier had a spell in the side playing out of position at left back. His poor performances there lead to many fans seeing him as the weak link in the side. However he was then moved to the centre of the defence, putting in a string of good performances, including an heroic performance in a 2–1 win at home to Tottenham. In contrast, his performances at centre back led to the praise of many fans. Following the arrival of Brian McDermott as manager and an injury to Sam Byram, the United captain started the last two games of the season, at home to Brighton and away to Brighton in his usual position of right back.

After much speculation regarding the captain's armband, despite captaining Leeds during 2013–14 pre-season and for the opening two games of the season, Peltier was replaced as captain by team-mate Rodolph Austin who returned to the side against Leicester City on 11 August 2013.[21]

Peltier scored is first ever Leeds goal in the 1-1 draw against Blackpool on 26 December 2013 with a looping header.[22]

On 24 March, Leeds announced that Peltier had signed for Nottingham Forest on loan, however Forest owner Fawaz Al-Hasawi announced the same day that the deal hadn't been completed,[23] With confusion over which club Peltier was contracted to,.[24] On 27 March 2014, Peltier moved on loan to Nottingham Forest, only hours after their sacking of Billy Davies as manager.[25] Peltier was favoured in a central midfield position for Forest under caretaker manager Gary Brazil. With Forest appointing Stuart Pearce as the new manager, Peltier revealed upon his return to Leeds that he wasn't sure what his future would hold.[26]

On 23 June 2014, Peltier left Leeds United, with the club terminating his contract. On the same day, Peltier rejoined former club Huddersfield Town on a three year deal. He will take the number 37 shirt which he wore during his loan spell at Nottingham Forest at the end of the previous season. On 7 August, he was named as the new captain, replacing Peter Clarke, who left at the end of the previous season. He made his second début for the Terriers in their 4-0 defeat by A.F.C. Bournemouth on 9 August. On 16 October, he was relieved of his duties as captain, whereby new signing Mark Hudson.

Peltier is a former youth international player having represented his native England at international level, he has been capped at under-18 level three times during his time as a player at hometown club Liverpool but has not yet been capped at a higher level than under-18s to date.[28]